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BlackRock (BLK): Reassessing Valuation After Recent Share Gains and Long‑Term Outperformance

Simply Wall St · 1d ago

BlackRock (BLK) is back in focus as investors weigh its recent share performance against a solid multi year track record, asking whether the current price around $1,080 still offers enough upside.

See our latest analysis for BlackRock.

Recent trading has been firm, with a 1 day share price return of nearly 4 percent and a year to date share price gain above 6 percent. Multi year total shareholder returns above 60 percent suggest the longer term wealth creation story is still very much intact, even if near term momentum has cooled slightly.

If BlackRock’s steady compounding appeals to you, this could be a good moment to explore other financial names with room to run, starting with fast growing stocks with high insider ownership.

With BlackRock still trading at a sizeable discount to analyst targets but screens flagging a weak value score, investors now face a key question: is this a genuine buying opportunity or is future growth already priced in?

Most Popular Narrative Narrative: 18.7% Undervalued

With the most followed narrative setting fair value well above the last close at $1,079.87, the gap hinges on a specific growth engine.

BlackRock's expansion into private markets through acquisitions like HPS Investment Partners, GIP, and ElmTree positions the company to capitalize on the secular shift of institutional assets into alternatives and infrastructure, driving higher fee revenue streams and long term earnings growth.

Read the complete narrative.

Want to see why steady revenue growth, rising margins and a premium earnings multiple still add up to upside from here? The full narrative unpacks every assumption.

Result: Fair Value of $1,328.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent fee pressure and execution risks around large private market acquisitions could easily derail the upside case if synergies disappoint.

Find out about the key risks to this BlackRock narrative.

Another Angle on Valuation

Step away from fair value models and BlackRock suddenly looks expensive. Its 27.5x price to earnings ratio sits above the US Capital Markets average of 23.9x and well ahead of a 19.4x fair ratio, raising the risk that expectations, not fundamentals, are doing the heavy lifting.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:BLK PE Ratio as at Dec 2025
NYSE:BLK PE Ratio as at Dec 2025

Build Your Own BlackRock Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom thesis in minutes: Do it your way.

A great starting point for your BlackRock research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, give yourself the chance to spot what others might miss by using the Simply Wall Street Screener to surface targeted, data driven opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.